EACOM Timber Corporation, together with other such companies in Ontario, think that a new round of US duties on Canadian softwood lumber exports is inavoidable.
“The American market is critical for us. The majority of our shipments are destined to the U.S. 95% of Ontario’s forest products are destined to the U.S. For us at EACOM, we’re Ontario’s largest softwood producer with our five sawmills and so access to the U.S. market is critical for us to maintain and grow our operations,” said Christine Leduc, EACOM’s director of public affairs.
At the moment, with the 2006 Softwood Lumber Agreement expired in October 2015, there is an ongoing standstill period until October 2016. During this time, the duty-free shipping of Canadian lumber to the U.S. continues, according to Timmins Press.
Even if President Barack Obama and Prime Minister Justin Trudeau promised back at a gathering in March, that they would find a solution until mid-June, there is still no agreement reached.
Because of the lack of a new agreement, the uncertainty in the Canadian forest industry is growing. On top of this, there is the U.S. presidential election where the presumptive presidential nominees have already espoused protectionist positions.
The U.S. Lumber Coalition, which believes the Canadian forest industry has an unfair cost advantage because its wood is harvested from Crown lands, is expected to make a big push for duties on Canadian softwood imports if a deal is not reached by mid-October. The coalition portrays Canadian wood products as government subsidized.
The U.S. Lumber Coalition even issued a statement through which they expressed their support for continued negotiations.
EACOM doesn’t have any plans to adjust its operations, especially after the companies invested millions of dollars in developing their sawmills. Leduc also pointed out that EACOM spent $27 million in rebuilding the Timmins sawmill, while it added 20% more capacity. The company is patient about the two countries reaching a new deal and they will continue to improve their operations.
